3.4.1 Demand outcomes from the launch

The general demand outcomes include trial and repurchase, customer migration, innovation adoption and diffusion. The choice of demand outcome depends on the relationship between the consumer and the new product. Trial and repurchase, if the product is acceptable, is usually the buyer behaviour with incremental food products where the risk of purchase and eating is perceived as small. Buyers recognise the product as related to other products, the price is small and there is no great loss to the consumer unless there is a problem with food safety. Customer migration, the movement of competitors' customers to the new product, is the desired demand outcome when the product represents a significant improvement or change. The new product has a greater value for the consumer than the competitor's product and the ability to replace the existing product. Some of the situations for selecting particular demand outcomes are shown in Table 3.4.


Table 3.4 Demand outcomes for product launch

Demand outcome Product development project Trial and repurchase New product in existing market Line addition in existing market Emphasis on selective demand Customer migration Product improvement Emphasis on replacement demand Innovation adoption and diffusion New-to-the-world product Emphasis on primary demand, adoption and diffusion

Source: After Guiltinan, 1999.


Innovation adoption and diffusion are chosen where the product is new to the market and the consumer. This follows the traditional innovation curve with the innovators, influentials, followers and die-hards as shown in Fig. 3.14.

Fig. 3.14 The product diffusion cycle.

The diffusion curve can vary a great deal: the initial sales may be very slow and then there is a sharp rise, or there may be a fast initial rise and then a plateau. The shape of the curve is related to the product/consumer relationship but the launch tactics can affect it. The consumers may take some time to recognise and want the product so there is a slow uptake; or the product may fulfil an important need of the consumer, so they buy it immediately and sales increase rapidly. However, after the innovators have bought the product, the influentials and followers may take some time to buy and there is a plateau in the sales curve. Promotion and advertising can make consumers aware of the product more quickly than by word of mouth, and so they will buy earlier and the rate of sales growth will increase.

Another marketing method to quicken the sales rate is to give consumers samples to taste in the supermarket; this gives them the opportunity to try the product at no cost, and if they accept the product they are encouraged to buy it. In launching, it is very important to understand the consumer/product reaction and how launch strategies and tactics affect it.